diff --git a/avocado/core/test.py b/avocado/core/test.py
index 7a93a88f90e6587b57be8d907883222dec8a7628..809519e33b69e23ae9d52972b4f6c9d4eec73746 100644
--- a/avocado/core/test.py
+++ b/avocado/core/test.py
@@ -1186,7 +1186,7 @@ class SimpleTest(Test):
                 if re_skip.search(result.stdout_text):
                     raise exceptions.TestSkipError(skip_msg % 'stdout')
 
-            if warn_location in ['all', 'stderr']:
+            if skip_location in ['all', 'stderr']:
                 if re_skip.search(result.stderr_text):
                     raise exceptions.TestSkipError(skip_msg % 'stderr')
 
diff --git a/selftests/functional/test_basic.py b/selftests/functional/test_basic.py
index bb061bd3e19026d01312aa8308bf6b0581bfd6df..476899cd54cf25f252dcb5caf0a4f048719e158e 100644
--- a/selftests/functional/test_basic.py
+++ b/selftests/functional/test_basic.py
@@ -855,14 +855,16 @@ class RunnerSimpleTestStatus(unittest.TestCase):
         self.config_file = script.TemporaryScript('avocado.conf',
                                                   "[simpletests.status]\n"
                                                   "warn_regex = ^WARN$\n"
-                                                  "skip_regex = ^SKIP$\n")
+                                                  "skip_regex = ^SKIP$\n"
+                                                  "skip_location = stdout\n")
         self.config_file.save()
         os.chdir(basedir)
 
     def test_simpletest_status(self):
+        # Multi-line warning in STDERR should by default be handled
         warn_script = script.TemporaryScript('avocado_warn.sh',
                                              '#!/bin/sh\n'
-                                             'echo -e "\\n\\nWARN\\n"',
+                                             '>&2 echo -e "\\n\\nWARN\\n"',
                                              'avocado_simpletest_'
                                              'functional')
         warn_script.save()
@@ -873,7 +875,7 @@ class RunnerSimpleTestStatus(unittest.TestCase):
         json_results = json.loads(result.stdout_text)
         self.assertEquals(json_results['tests'][0]['status'], 'WARN')
         warn_script.remove()
-
+        # Skip in STDOUT should be handled because of config
         skip_script = script.TemporaryScript('avocado_skip.sh',
                                              "#!/bin/sh\necho SKIP",
                                              'avocado_simpletest_'
@@ -886,6 +888,19 @@ class RunnerSimpleTestStatus(unittest.TestCase):
         json_results = json.loads(result.stdout_text)
         self.assertEquals(json_results['tests'][0]['status'], 'SKIP')
         skip_script.remove()
+        # STDERR skip should not be handled
+        skip2_script = script.TemporaryScript('avocado_skip.sh',
+                                              "#!/bin/sh\n>&2 echo SKIP",
+                                              'avocado_simpletest_'
+                                              'functional')
+        skip2_script.save()
+        cmd_line = ('%s --config %s run --job-results-dir %s --sysinfo=off'
+                    ' %s --json -' % (AVOCADO, self.config_file.path,
+                                      self.tmpdir, skip2_script.path))
+        result = process.run(cmd_line, ignore_status=True)
+        json_results = json.loads(result.stdout_text)
+        self.assertEquals(json_results['tests'][0]['status'], 'PASS')
+        skip2_script.remove()
 
     def tearDown(self):
         self.config_file.remove()